Marshfield business incubator sought

Barb Mueller, owner of My Oh My! Boutique works on converting wreaths made of garden hose to a summer look rather than their current spring look, Thursday, July 2, 2015, at the shop in Marshfield. Umbrellas hang from the ceiling throughout the shop.(Photo: Dan Young/ News-Herald Media)Buy Photo

"We have a lot of people who have ideas for businesses," City Council member Ed Wagner said.

On Thursday, Wagner plans to ask the city's Economic Development Board to conduct an assessment identifying the demand for and possible locations of an incubator in Marshfield.

Incubators aim to help entrepreneurs start and grow their companies by providing relatively cheap spaces to operate and training programs in business management. There were more than 1,250 business incubators in the United States as of 2012, according to the most recent data available from the National Business Incubation Association.

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Wausau’s former business incubator, which was replaced in 2006 with a new facility and renamed the Entrepreneurial and Education Center.(Photo: File/Gannett Wisconsin Media)

Marshfield has no incubator now, but there was one here in the 1980s. It ended because of a lack of funding, according to Wagner.

"There has been records of success for these things in the past, not only in Marshfield but in other places," he said.

Bringing back a business incubator to Marshfield is not a new idea. A consultant in 2013 recommended that the Economic Development Board explore an incubator program aimed at supporting entrepreneurs and helping fund enhancements such as a commercial kitchen or video conferencing equipment.

But the board has not formally pursued an incubator yet, principally because of lack of demand, according to Jason Angell, the city's planning and economic development director.

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Marshfield City Council member Ed Wagner(Photo: File/USA TODAY NETWORK-Wisconsin)

"I'm not saying this community couldn't do it, but there's a long way to go before we could even consider whether we want to create one or not," Angell said.

Plenty of questions

For instance, he said, one decision that would have to be made is the kind of incubator: Would it house industrial businesses or retail space, provide offices for service-oriented entrepreneurs or focus on medical research and laboratories?

Another big question: How would an incubator be funded? The city has about $750,000 set aside from an old business loan program that must be used for economic development efforts, but that money might be divided up for multiple uses, Angell said. The city will identify priorities with how to use that money within the next two to three months.

Still, investment in an incubator is likely to help produce new jobs, according to a 2008 study commissioned by the U.S. Department of Commerce Economic Development Administration. The study found that nearly 70 jobs can be created for every $10,000 in government funds allocated to business incubation.

Those jobs would be rooted in companies with strong local ties, and that's an important consideration, said Scott Larson, executive director of the Marshfield Area Chamber of Commerce and Industry. The best chance to grow the city's economy, he said, is by tapping resources already here.

"All the major employers here in town are all home-grown businesses," Larson said, pointing to Marshfield Clinic, Figi's and V&H Automotive. "They didn't all start at the size they're currently at. They started in garages and in small shops and in other locations, and they just continued to grow and grow and grow."

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Figi’s, 3200 S. Central Ave., is one example of a company that was founded in Marshfield and has grown substantially. Officials say a business incubator could help entrepreneurs emulate that success.(Photo: Jonathan Anderson/News-Herald Media)

Success in Wausau

Wausau has had a business incubator since the late 1980s. It initially was operated by the city but became a non-profit organization in 2006, when it moved into a new facility. The incubator provides entrepreneurs a diverse mix of spaces, including offices, light manufacturing areas, climate-controlled testing labs and a kitchen.

Has it spurred economic development?

"Oh yes," said Romey Wagner, facility manager of Wausau's incubator, the Entrepreneurial and Education Center. (He is not related to Marshfield City Council member Ed Wagner.)

Within the last four years, 76 businesses have graduated from the center's incubation program and remain operating. Entrepreneurs from Marshfield, Spencer and Wisconsin Rapids have even sought help from the Wausau center, Wagner said.

Most programs are at no cost to clients, and volunteers teach many courses. Such support is key, Wagner said, because funding is the biggest hurdle facing incubators. The center's latest facility cost $3.4 million and was paid entirely with federal, state and city grants.

Wagner offered another tip to Marshfield officials: Be strategic. An incubator should match the kinds of businesses that are feasible in an area.

"You fill the need of the community," he said.

Jonathan Anderson can be reached at janderson9@marshfield.gannett.com or 715-384-3131, ext. 328. Find him on Twitter as @jonathanderson.